Kathryn M. Danner v. George Earl Danner ( 2024 )

In The
Court of Appeals
Ninth District of Texas at Beaumont
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NO. 09-21-00183-CV
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KATHRYN M. DANNER, Appellant
V.
GEORGE EARL DANNER, Appellee
________________________________________________________________________
On Appeal from the 418th District Court
Montgomery County, Texas
Trial Cause No. 17-03-04143-CV
________________________________________________________________________
MEMORANDUM OPINION
In this appeal, we are asked to determine whether an award of a bank or
brokerage account, made pursuant to § 7.001 of the Texas Family Code, authorizes
an award of interest on the value of the account. See Tex. Fam. Code Ann. § 7.001;
Tex. Fin. Code Ann. § 304.005. We hold that the trial court properly denied the
request for interest on the three accounts in question. We therefore affirm the trial
court’s decision.
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I. Background
Kathryn and George Danner were married in the early 1990s and sought a
divorce in 2017. The trial court granted the divorce and divided the parties’ marital
estate, awarding Kathryn part or all of three brokerage accounts. When George
appealed the trial court’s decision, we affirmed the lower court’s property division,
and our Supreme Court denied George’s petition for review. See Danner v. Danner,
No. 09-18-00385-CV, 2020 WL 6325725 (Tex. App.—Beaumont Oct. 29, 2020,
pet. denied). During the lengthy appellate process, 1 Kathryn was denied access to
the brokerage accounts awarded to her and, therefore, sought interest on the value of
those accounts. The trial court denied Kathryn’s request, concluding that the awards
of the accounts were not “money judgments.” Kathryn filed this appeal.
II. Standard of Review
The outcome of this appeal hinges on the definition of a “money judgment”
that would accrue postjudgment interest. See Tex. Fin. Code Ann. §§
301.002(a)(12), 304.005(a). Matters of statutory construction are reviewed on appeal
as questions of law under a de novo standard of review. See State v. Shumake, 199
S.W.3d 279, 284 (Tex. 2006).
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The trial court signed the parties’ divorce decree on September 7, 2018, but
the appeal was not resolved until we issued our mandate on April 19, 2021.
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III. Analysis
The September 7, 2018, divorce decree awarded Kathryn two Merrill Lynch
investment accounts, with a combined value of $548,177.25, and the equivalent
value of $1,062,242.20 out of an Edward Jones retirement account. All three
accounts were kept invested in “numerous funds, stocks, bonds, and other assets”
that fluctuate in value. Each account was to be divided pursuant to the Decree and
as “more particularly defined in a Qualified Domestic Relations Order signed by the
Court.” The decree award included “interest, dividends, gains, or losses” on the
awards, but did not reflect the amounts of cash and/or securities contained in the
accounts in question.2 What, at first blush, appears to state a monetary award of
$1,062,242.20 out of the designated Edward Jones account was subsequently
clarified by an order of the court signed on May 13, 2021. That clarifying order
directed the Edward Jones account to be divided pursuant to the QDRO, signed on
May 13, 2021, awarding Kathryn 82.46 % of the Edward Jones account at issue. The
record is silent as to whether the court has signed a QDRO as to each of the Merrill
Lynch accounts which were awarded 100% to Kathryn. However, each of the three
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Other documents in the appellate record show that in September of 2018,
when the trial court signed the parties’ divorce decree, the Merrill Lynch accounts
contained minimal cash deposits, but substantial equities, mutual funds, and
“alternative investments.”
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accounts were of the same nature in that they contained a mix of cash and securities,
most of which were securities, and they did not meet the definition of “money.”
Kathryn contends that the two-and-one-half year delay in her access to these
accounts merits an award of postjudgment interest pursuant to the Texas Finance
Code. See Tex. Fin. Code Ann. § 304.005(a). George, conversely, contends that the
award of these accounts does not constitute a “money judgment” as that term is
contemplated by the cited statutory section.
Because “every word excluded from a statute must . . . be presumed to have
been excluded for a purpose[,]” we presume that a statute permitting postjudgment
interest on a “money judgment” does not also allow postjudgment interest on a
judgment for something other than money. City of Fort Worth v. Pridgen, 653
S.W.3d 176, 185 (Tex. 2022) (citation omitted). The Texas Finance Code defines a
money judgment as “a judgment for money.” Tex. Fin. Code Ann. § 301.002(a)(12);
Long v. Castle Tex. Prod., Ltd. P’ship, 426 S.W.3d 73, 78 (Tex. 2014). Money is
defined as “a medium of exchange currently authorized or adopted by a domestic or
foreign government.” Tex. Bus. & Com. Code Ann. § 1.201(b)(24); Riverside Nat’l
Bank v. Lewis, 603 S.W.2d 169, 174 (Tex. 1980). This definition distinguishes
money from securities, which are defined as including stocks, bonds, commercial
paper, and the like. See Tex. Gov’t Code Ann. § 4001.068(a). Therefore, we
conclude that a divorce decree granting an award further defined by a QDRO that
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divides an account containing a mix of investments and cash is not a money
judgment. Each of the three accounts were of the same nature in that they contained
a mix of cash and securities, most of which were securities, and they did not meet
the definition of “money” found in § 1.201(b)(24) of the Business and Commerce
Code. See Tex. Bus. & Com. Code Ann. § 1.201(b)(24). The subsequent order of
the court clarified that the award in the Final Decree was not an award of money but
was a division of retirement accounts pursuant to a QDRO. For this reason, Kathryn
may not receive interest on the value, as of the date of divorce, of either the Merrill
Lynch accounts or the Edward Jones account awarded to her in the divorce decree.
We overrule Kathryn’s three appellate points.
IV. Conclusion
Because we hold that the award of the two Merrill Lynch accounts and the
Edward Jones account did not constitute a money judgment pursuant to the Texas
Finance Code, we affirm the trial court’s judgment denying Kathryn’s request for
postjudgment interest on those accounts.
George’s pending motion to dismiss the appeal presents the same arguments
presented in his brief. We deny that motion to dismiss the appeal.
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AFFIRMED.
JAY WRIGHT
Justice
Submitted on February 3, 2023
Opinion Delivered February 15, 2024
Before Golemon, C.J., Wright and Horton, JJ.
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